SHANGHAI, Sept. 10 (SMM) – Spot copper settled RMB 20-80/mt below SHFE 1509 copper in Shanghai on Wednesday. Traded prices were RMB 40,720-41,360/mt for standard-quality copper and RMB 40,760-41,400/mt for high-quality copper.
SHFE copper entered the upside track on Wednesday. Cargo holders were more willing to hold prices firm as SHFE 1510 copper prices improved over 1509 copper. Traders sold copper futures to buy spot copper at discounts for term contracts as they believed that spot discounts will gradually narrow and even invert to premiums in future. Trading activities improved marginally and trades were contributed mainly by traders with downstream buyers watching from the sidelines.
SHFE 1511copper also entered the upside track during Tuesday evening session responding to a growth in LME copper. SHFE copper gapped higher at RMB 40,000/mt and then advanced to RMB 41,110/mt before ending at RMB 40,880/mt, gaining RMB 80/mt. Positions increased 14,692 to 236,178 with trading volumes roughly 420,000 lots.
On Wednesday, SHFE copper extended gains to touch an intra-day high of RMB 41,550/mt and finally closed the day at RMB 41,140/mt, up by RMB 1,750/mt or 4.44%. Positions increased 11,728 to 233,214 and trading volumes were up to 552,000 lots.